Leading French utility Suez has announced that its consortium with Omani groups National Trading Company and National Energy Center has secured a €2 billion ($2.3 billion) contract from Oman's Nama Water Services Company for the operation and maintenance of its water and wastewater facilities in Cluster 1 of Muscat.
Under a 15-year performance-based agreement, Suez and partners will provide key water and wastewater services to the capital Muscat, the North Sharqiyah and South Sharqiyah Governorates.
The contract, announced during the state visit of Oman's His Majesty Sultan Haitham bin Tarik to France, is Suez's largest in the Middle East and covers water and wastewater services for about 2.3 million people, or roughly 43% of the sultanate's population.
According to Suez, the agreement covers the operation and maintenance of water supply infrastructure, including 240 wells, about 10,700 km of pipelines, four desalination plants as well as more than 400,000 smart water meters.
It involves the operation of 22 wastewater treatment plants with a combined treatment capacity of 280,000 cu m per day, around 3,000 km of sewer networks and treated water distribution systems.
The contract also includes performance targets tied to operator remuneration, including reducing water losses from 34% to 11% by 2040, ensuring continuous drinking water supply and improving the reliability and lifespan of water infrastructure through preventive maintenance.
On the big win, CEO Xavier Girre said: "It is an honour for Suez to collaborate with the Omani authorities to provide sustainable drinking water and sanitation services to more than 2 million people. This is also a great source of pride as it is the largest contract ever awarded to Suez in the Middle East, illustrating the strong momentum of our development in the region."
"This success reflects the recognition of Suez teams’ expertise in addressing critical water challenges in a context of structural water stress," he added.
Providing effective and sustainable water
As Oman faces economic growth and rising demand, ensuring effective and sustainable water management is a major priority for the country’s future. The Omani authorities aim to address these challenges, in the ‘Vision 2040’ strategy, by reducing costly water losses and implementing performance-driven practices to improve operational efficiency. They also aim to ensure workforce stability and enhance the long-term attractiveness of the Omani water sector by accelerating capacity building and knowledge transfer.
The scope of the contract, drawn on SUEZ’s expertise, will cover both:
* Water services with the operation and maintenance of 240 wells and 10,700 km of pipelines to distribute 470,000 cu m/day of drinking water. It also covers the refurbishment and upgrading of 4 desalination plants and the operation of more than 400 000 smart meters.
* Wastewater services with the operation and maintenance of 22 wastewater treatment plants, representing a total treatment capacity of 280,000 cu m/day, around 3,000 km of sewer networks, and 400 km of treated effluent networks delivering treated water for reuse, and installation and operation of new wastewater house connections.
Combining global expertise and local capabilities
This performance-based contract comprises 33 key performance indicators to ensure the sustainable operation and delivery of high-quality water services, that will determine the operators’ remuneration. These KPIs include:
• Reduce water losses from 34% to 11% by 2040
• Guarantee a high-quality, 24-hour water supply
• Carry out optimised preventive maintenance activities to improve service reliability and extend asset lifespan
These service improvements rely on SUEZ’s proven practices, along with the implementation of the group’s technologies and other digital solutions: Aquadvanced to monitor plants and networks, optimize performance and reduce energy and chemicals consumption; Inflowmatics and iDroloc to ensure advanced leak detection and Sewerball to enable rapid detection of water pollution or infiltration in sanitation networks.
Beyond technologies, the success of the project relies on the expertise of the Omani teams. A comprehensive capacity-building programme, drawing on international expert knowledge, has been designed to develop operational and managerial skills over the long term. The performance-based contract involves strong commitment to omanisation (>83%) and In Country Value, supporting the Government's strategic goals of Oman Vision 2040, a statement said. -TradeArabia News Service